« previous next »

Author Question: What is the natural level of output?[br][br][b][color=#347235]Question 2[/color][/b][br][br]Suppose ... (Read 125 times)

nautica902

  • Hero Member
  • *****
  • Posts: 591
on: Jun 30, 2018
What is the natural level of output?

Question 2

Suppose the real interest rate in the economy is 3 and the nominal interest rate is 6, what is the current inflation rate?
 a. 18
  b. 9
  c. 2
  d. 3
  e. 2.5


blfontai

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 30, 2018
Answer to Question 1

It is the level of output in the long run where aggregate supply is vertical with respect to changes in the price level. This position is determined by the natural level of output, which reflects the levels of capital, land, labor, and technology in the economy.

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Question Question
A color-coded record. A color-coded record.
How to evaluate third-order determinants by Minors Method (Question 2) How to evaluate third-order determinants by Minors Method (Question 2)
Some drugs are still derived from natural sources Some drugs are still derived from natural sources
During a period of high power demand, the voltage output of the power company is reduced by ... During a period of high power demand, the voltage output of the power company is reduced by ...
Eye Color Variation Eye Color Variation
Video: Blood Flow through the Human Heart

For a complete list of videos, visit our video library